The FTC Warns of the "Government Grant Scam"
The lure of "free" money can be great. Don't take the bait.
The claim - "Because you pay your income taxes on time, you have been awarded a free $12,500 government grant! To get your grant, simply give us your checking account information, and we will direct-deposit the grant into your bank account!"
You might receive an ad or a phone call from a supposed "government" agency saying your application for a grant is guaranteed to be accepted, and you'll never have to pay the money back! Please remember, "Money for nothing" grants are scams, whether you see them in your local paper or a national magazine, or hear about them on the phone.
Grant scammers generally follow a script: they congratulate you on your eligibility, then ask for your checking account information so they can "deposit your grant directly into your account," or cover a one-time "processing fee." The caller may even reassure you that you can get a refund if you're not satisfied. In fact, you'll never see the grant they promise; they will disappear with your money.
The FTC says following a few basic rules can keep consumers from losing money to these "government grant" scams:
- Don't give out your bank account information to anyone you don't know.
- Don't pay any money for a "free" government grant.
- Look-alikes aren't the real thing. Scammers impersonate government agencies.
- Phone numbers can deceive. Technology can make it appears as if the scammer is calling from Washington D.C.
- Take control of the calls you receive. Register your phone numbers on the National Do Not Call Registry by visiting donotcall.gov. To register by phone, call 1-888-382-1222 from the phone number you wish to register.
- File a complaint with the FTC online, or call toll-free, 1-877-FTC-HELP; TTY: 1-866-653-4261.
For more information on this or other scams go to www.ftc.gov.
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